Growth Metrics and Key Performance Indicators Questions

Comprehensive knowledge of growth metrics and key performance indicators used to measure user acquisition, engagement, retention, and revenue. Candidates should understand definitions, business meaning, and how to calculate metrics from raw event and transaction data. Core metrics include customer acquisition cost, lifetime value, lifetime value to customer acquisition cost ratio, conversion rate, churn rate, retention rate, monthly active users, daily active users, cohort retention, activation, engagement, average revenue per user, payback period, viral coefficient, and growth rate over time. Candidates should be able to choose appropriate leading and lagging indicators, explain unit economics, and reason about tradeoffs across acquisition, activation, retention, revenue, and referral stages. Practical skills include designing instrumentation and tracking for events and transactions, selecting attribution windows, avoiding sampling and attribution pitfalls, cleaning and deduplicating event streams, and calculating metrics by cohort and segment. Candidates must be able to perform funnel analysis and cohort analysis to diagnose problems, prioritize optimization levers, set metric baselines and success criteria for controlled experiments and split tests, assess sensitivity to seasonality pricing changes and growth initiatives, and communicate metric driven recommendations and dashboards to stakeholders. They should also identify which metrics matter for different business models such as business to business versus business to consumer and subscription versus transactional models.